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Seedling Trees. —The number of trees raised from seed during the year is estimated at 5,761,535, and the number thus grown to date is 37,192,644. These trees have made extraordinarily good growth, which is due to the fact that they we're protected by the seed-frames during the hot dry weather in December that adversely affected the lined-out trees and two-year-old seedlings which were not so protected. The larch crop, which is very fine, is smaller in number this year owing to the scarcity of feed. On the other hand, the Pinus Laricio, of which more seed was procured, germinated splendidly, and there is therefore an abundance of this species. Pinus ponderosa is a good crop in respect both to germination and growth, as are also Pinus radiata and Eucalyptus SPuartiana. Redwood germinated very sparsely, but what trees there are are nice sturdy plants. A number of other species were grown experimentally, and details of these will be found in Schedule 1 appended. Of these, the western larch (Lariat occtdentalis) deserves special mention. This species is reputed to be a very valuable timber tree, and this is the first occasion on which it has been grown here. From inquiries that have been made so far, there seems a probability that seed of this species will be somewhat difficult to procure. We are indebted to Mr. 'I. \\ . .Vilnius, Greendale, Canterbury, for the small packet which was sown this year. The two-year-old seedling trees have nut made their usual vigorous growth, but are still of a size suitable for transferring to the plantations. The larch seedlings were much infested with the grass grub, which caused a number of trees to die oil' during the dry spring months. This trouble was reduced somewhat by injecting bisulphide of carbon in the parts of the seed-beds most affected, but it is a tedious undertaking to carry out this treatment over a large area of ground. Amongst the lined-out trees the growth generally is below the average, but, on the other hand, scarcely any failures have occurred. The Pinus Laricio are particularly good, and the other species of pines fair, but amongst the larch the growth is very patchy. Twenty-five acres of vacant land in the nursery were, in the spring, sown down in oats and ryecorn in mixture, and resulted in about 30 tons of fairly good sheaf, which it is proposed to chaff. Horse-feed is a fairly bigitem in our expenditure, and this crop will therefore effect a considerable saving. The land is certainly not entirely suitable for such crops, but, even with fair results, cropping may be regarded as profitable. It is proposed to take in a further area of about 16 acres simply for growing horsefeed. The shelter plantations and hedges in the nursery have now attained in a fair height, and their influence on the crops is being felt more every year. These have enhanced the value of the property both from a utilitarian and scenic standpoint, and the grounds now attract a large number of visitors. During last winter trees to the number of 5,102,400, valued at £8,777 Bs. 10d., were sent out from the nursery (details in Schedule i). Besides these trees, a large number of seedlings were sized and got ready for lining-out, the total number of trees actually handled in ihe nursery during the year being 8,300,000. The cost of the various operations was as follows: Lifting, counting, and tying into bundles cost 2s. 2d. per thousand trees; sizing seedlings cost Is. 3d. per thousand; lining-out trees in nursery cost Is. Yd. per thousand. For the coming winter preparations are in hand for transferring about five million trees to the Whakarewarewa and Waiotapu Plantations. 'Ihe number of trees sent out from the nursery to date is 27,395,209, and their value £55,237 14s. 7d. Details of stock in hand and trees transferred and expenditure and vaules are appended. Vouchers dealt with during the year were 251, covering a total amount of £10,630 Is. 6d. The correspondence —Inwards, 560; outwards, 749; parcels (out), 53: total, 1,362. Official stamps used for postages and telegrams totalled £9 16s. 3d. The following is a record of rainfall and temperature for the year (1909-10) : —

Month. Number b—i. Lzaa Rain fell. Highest Reading of Thermometer. Date. Lowest Reading of Thermometer. Date. 1909. April ... May ... .... June ... July August September October November December 1910. Inches. 3-35 5-41 4-26 9-59 1201 4-93 5-69 3-91 3-30 10 17 15 16 18 18 16 14 8 Degrees. • 75 9th 71 1st 68 22nd and 23rd 61 19th and 27th 62 31st 67 28th 74 14th 79 12th 88 17th Degrees. 29 13th 25 29th 25 1st and 10th 24 14th 24 13th 26 onh 31 15th 34 8th 40 22nd January February March 11-02 7-54 5-66 15 8 18 87 5th 84 23rd 79 18th 42 2nd 46 2nd 40 25th Totals ... 76-67 — 173 —| —